Beyond Aid: New Sources and Innovative Mechanisms for Financing Development in Sub-Saharan Africa

By Dilip Ratha, S. Mohapatra, Sonia Plaza. 2008

422 citations recorded by the source corpus.

Given Sub-Saharan Africa's enormous resource needs for growth, poverty reduction, and other Millennium Development Goals, the development community has little choice but to continue to explore new sources of financing, innovative private-to-private sector solutions, and public-private partnerships to mobilize additional international financing. The paper suggests several new instruments for improving access to capital. An analysis of country creditworthiness suggests that many countries in the region may be more creditworthy than previously believed. Establishing sovereign rating benchmarks and credit enhancement through guarantee instruments provided by multilateral aid agencies would facilitate market access. Creative financial structuring, such as the International Financing Facility for Immunization, would help front-load aid commitments, although these may not result in additional financing in the long run. Preliminary estimates suggest that Sub-Saharan African countries can potentially raise USD 1-3 billion by reducing the cost of international migrant remittances, USD 5-10 billion by issuing diaspora bonds, and USD 17 billion by securitizing future remittances and other future receivables. African countries that have recently received debt relief however need to be cautious when resorting to market-based borrowing.

Subfields: Development, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/5c64ebb1d769673f5871ffea3190bee7f54b7807

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Development

In Economics and Econometrics

Citations in the corpus

Educational Upgrading and Returns to Skills in Latin America: Evidence from a Supply-Demand Framework, 1990-2010 (2011, background): “But a more salient feature of the decade of 2000s in Latin America was the growing importance of exports in the midst of a boom in commodity prices (Baffes and Haniotis, 2011) and in the context of the emergence of new trade partners for the countries in the region, most notably China (De La Torre e”
Impacts of ethanol policy on corn prices: A review and meta-analysis of recent evidence (2015, background): “Oil prices increase the price of food directly by pushing up the cost of inputs like petroleum-based fertilizer and indirectly by making biofuels more competitive with gasoline, spurring diversion of crop feedstocks from food to fuel (Baffes & Haniotis 2010).”
Impact of biofuel production and other supply and demand factors on food price increases in 2008 (2011, background): “[16] Baffes J and Haniotis T.”
Commodity Booms and Busts (2011, background): “Others argued that the boom constituted a speculative bubble (Khan 2009) and that index fund speculation played a key role (Baffes & Haniotis 2010, Gilbert 2010), arguments that were refuted convincingly by Irwin & Sanders (2011).”
Impact of Migration on Economic and Social Development: A Review of Evidence and Emerging Issues (2011, positive): “…income from remittances provide additional financial resources and better prospects associated with migration influence social norms and incentives towards 6 Ratha et al. (2008) estimate that Sub-Saharan African countries can potentially raise $5-10 billion per year by issuing diaspora bonds.”
Speculative bubbles in agricultural commodity markets (2013, background): “On the other hand, Baffes and Haniotis (2010) suggested that the link between food prices and energy prices is the main factor in recent commodity price movements. Energy prices affect food commodity prices by influencing the cost of inputs, such as nitrogen fertiliser, and the cost of transport. Th”
Agriculture and Development: A Brief Review of the Literature (2011, neutral): “Although the food price increases of 2006–2008 seemed drastic compared with previous years, the peak was not higher than others during the past century (Baffes and Haniotis, 2010).”
The Economics of Grain Price Volatility (2011, background): “Baffes and Haniotis (2010) remark that though wheat and rice consumption grew at near 2% per year from 2003-08 in India, consumption of both grains was reported to be stagnant over this Applied Economic Perspectives and Policy”
Beyond Aid: A Conceptual Perspective on the Transformation of Development Cooperation (2015, neutral): “ By contrast, beyond aid refers to the proliferation of sources and mechanisms of finance (Ratha et al., 2008).”
Volatility spillover between oil and agricultural commodity markets (2013, background): ““Financialization of commodities” has added a new dimension to the determinants of commodity price hikes (Baffes and Haniotis, 2010; Sari et al., 2011).”
Bioenergy from “surplus” land: environmental and socio-economic implications (2012, background): “The increasing demand for biomass for production of heat, power, biofuels and biobased materials is generating land-use conflicts which are discussed in the food versus fuel controversy (Baffes and Haniotis 2010) and the debate about indirect landuse change (iLUC) effects (Wiegmann et al. 2008).”